1 Minute Tip – Rule-Based Investing

Transcript:

Investing based on emotion is completely amateur.  So is blindly following the advice of a talking head on TV. 

So what should you do? 

You should follow a rule-based system for investing in individual stocks.  That means without fail you follow a set of guidelines of investing in stocks that doesn't change for any one stock.   

Your rules might be different than mine but the important thing is you never break from them. 

Here are three qualities of a solid rule-based system of investing...

  • It needs to have a proven track record of performance.  There is no sense in following a rule based system that just doesn't work. 
  • It needs to be implemented easily.  Much like dieting, a rule-based system only works if it's something you can actually follow.  If it requires more work than you are willing to commit to it, you won't follow it and you will fail. 
  • It needs to be measurable.  There needs to be a component of the system such as calculating the fair value of a stock that is measurable to see how well your system is performing against it's performance history. 

That's your minute tip, to become a better investor and get access to The 10X Investing Early Retirement Guide make sure to sign up for our free stock newsletter by entering your name and email below...

Derrick Horvath

My mission is to help 10,000 investors realize a return of 1000% (A 10X) on at least one investment.  If I can help you do just that one thing it'll make you realize anything is possible.  Join me to be one of the ten thousand that changes their lives.  

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